South Korea's Financial Services Commission is moving to formalize a three-agency consultative body covering the central bank and the finance ministry to coordinate legislation for won-pegged stablecoins, an FSC official said on Sept. 29.

Yoo Won-kyu, an official in the FSC's virtual asset division, told a Seoul forum that lawmakers are reviewing a bill designed to create the structure. "There appears to be broad agreement that a consultative body involving the FSC, the finance ministry and the Bank of Korea is needed," Yoo said.

The remarks came at a forum hosted by Democratic Party lawmaker Kim Hyun-jung titled "Future Governance of Won Stablecoins and Ways to Build a Market Ecosystem Through Overseas Cases."

What is the FSC proposing?

The FSC is preparing broader legislation to regulate digital-asset businesses, the market, and users, while separately reviewing a framework tailored to won stablecoins. Because such tokens derive value from a peg to fiat currency, the regulator is concentrating on requirements for sufficient reserve assets and a stable redemption system.

Lawmakers are also weighing measures to separate customer assets and protect them in the event of issuer bankruptcy. The draft approach would distinguish an issuer's own assets from reserve assets earmarked for redeeming holders, while preserving redemption rights even if the issuer fails. Yoo noted that the U.S. GENIUS Act and the European Union's Markets in Crypto-Assets regulation (MiCA) both pursue comparable safeguards.

Who would sit at the table?

Lee Jung-doo, a researcher at the Korea Institute of Finance, outlined a model centered on the FSC and joined by the finance ministry and the Bank of Korea, rather than spawning a new supervisor. Under the proposal:

• The FSC and the Financial Supervisory Service would handle issuance approval and user protection.
• The Korea Financial Intelligence Unit would oversee anti-money laundering.
• The Bank of Korea and the finance ministry would cover payment and settlement, plus monetary policy and foreign-exchange policy respectively.

Lee argued that this division of labor makes coordination essential.

What other safeguards are under discussion?

Speakers pointed to gaps spanning licensing standards, reserve-asset management, redemption procedures, and AML oversight. Kang Hyun-gu, a lawyer at Lee & Ko, floated a consortium model anchored by banks and joined by fintech firms and large technology companies. He also argued that reserve assets should be legally segregated from an issuer's own balance sheet, with won redemption rights and procedures defined in statute.

How would distribution be monitored?

Kim Young-seok, chief executive of stablecoin issuer Bonanza Factory, raised unresolved questions about how far authorities should track token flows once they leave exchanges or custodial wallets and enter non-custodial wallets controlled by users. Kim said the scope and ownership of that monitoring will shape real-world adoption of won stablecoins.

What changes if a bill passes?

Establishing the consultative body requires passage of the underlying bill in the National Assembly, with the FSC yet to publish a draft timetable. Seoul's choice between widening the FSC's existing perimeter and creating a new supervisor will determine whether banks and fintechs can begin onboarding under a defined licensing regime before the legislative session closes.